Kenya passed the Virtual Asset Service Providers (VASP) Act, 2025, here’s are key compliances to follow:
1. Mandatory Licensing from:
– The Central Bank of Kenya (CBK) or
– The Capital Markets Authority (CMA),
depending on type of virtual asset activity (refer page 39 of pdf attached)
2. License renewals:
– Validity ends on 31st december each year. Hence, need to renew, irrespective of any start date during the year.
3. Major compliance requirements:
– minimum of three natural person directors.
– submission of annual audited financials within 3 months of year end.
– maintain physical office in Kenya.
– open and operate a bank account in Kenya.
– comply with AML/CFT/CPF preventive measure including sanctions.
– segregate customer’s virtual assets from the firm’s own property.
– not undertake mixer or tumbler services or anonymity-enhancing service
5. Other compliance:
– plan for business continuity and disaster recovery.
– customer complaints mechanism.
– whistleblowers mechanism.
– prevent market abuse and ensure the integrity and transparency.
– maintain effective consumer education program.
6. Penalties upto:
Tier 3 (eg: Unlicensed) –
Individual: KSh 10 million or Imprisonment up to 5 years, or both
Company: KSh. 25 million.
Tier 2 (eg: False/Misleading Information) –
Individual: KSh. 7 million or Imprisonment up to 3 years, or both
Company: KSh. 20 million
Tier 1 (eg: share transfer without regulatory approval) –
Individual: KSh. 3 million or Imprisonment up to 3 years, or both
Company: KSh. 5 million
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